Trump’s Revival of Keystone XL and Expansion of Dakota Access: The ‘Frankenpipelines’ Strategy

(SeaPRwire) –   Two of the most controversial pipeline projects of this century—the failed Keystone XL and the successful Dakota Access Pipeline—are being revived to transport Canadian oil into the United States, with cross-border permits swiftly approved by President Donald Trump.

The April permits come amid efforts by oil producers to move increasing volumes of Canadian crude to U.S. refineries, while the conflict in Iran strengthens the argument for greater North American energy self-sufficiency.

“These projects are gaining momentum because of what’s happening in Iran,” said Keland Rumsey, crude team lead analyst at East Daley Analytics, noting that the war may help speed up initiatives already under consideration. “The current regulatory environment under the sitting president clearly benefits these projects.”

The defunct Keystone XL (KXL), which ran from Alberta through Nebraska—and was blocked by both the Obama and Biden administrations—is being resurrected in a more streamlined version under a new name.

The Prairie Connector and Bridger Pipeline Expansion projects, led by Canada’s South Bow and True Companies’ Bridger Pipeline, will use existing pipe and infrastructure from the original KXL on the Canadian side—some of which were completed before its cancellation in 2021. The new route connects to a Bridger pipeline at the Montana border and extends 647 miles to the Guernsey, Wyoming interconnection hub.

Similarly, Rumsey explained that the “consistently underused” Dakota Access Pipeline (DAPL), which currently runs from North Dakota to Illinois, could indirectly expand its capacity to carry Canadian crude by linking with Calgary-based Enbridge.

Enbridge plans to reverse its Bakken Pipeline (Line 26)—which has historically transported oil northward into Canada—to instead bring Canadian barrels south to DAPL. To achieve this, Enbridge will construct approximately 80 miles of new pipeline to connect the two systems.

“These projects benefit from extensive pre-existing infrastructure, including rights-of-way and permits,” Rumsey stated.

By leveraging existing assets, the goal is to bypass many of the environmental and political challenges that previously stalled KXL and faced opposition from protesters and Native American communities.

“There’s less resistance when pipelines are already in place,” Rumsey noted.

New Keystone light momentum

The companies behind these projects are moving forward, though neither initiative is guaranteed at this stage.

South Bow, the oil-focused subsidiary of former KXL developer TransCanada (now TC Energy), confirmed it is conducting an internal review of the Prairie Connector project through late May.

If completed, the project would transport at least 450,000 barrels of Canadian heavy oil sands per day into the U.S.

In his May 8 earnings call, South Bow CEO Bevin Wirzba described the presidential permit as a “significant development,” but emphasized that further planning remains necessary, particularly given the involvement of multiple stakeholders.

The major unresolved issue is establishing a connection from Guernsey, Wyoming, to either the Cushing, Oklahoma hub or directly to Gulf Coast refining centers and export terminals in Texas and Louisiana.

Another pipeline segment is required, but the route remains uncertain—at least publicly. Reviving the original KXL path would reintroduce permitting hurdles encountered in Nebraska. Analysts like Rumsey have suggested aligning with Tallgrass Energy’s Pony Express Pipeline, but both Bridger and Tallgrass denied any partnership discussions to facilitate the flow of Canadian oil.

“We are evaluating options for the route between Guernsey and either Cushing or the Gulf Coast,” Bridger spokesman Bill Salvin told .

Meanwhile, Enbridge is focused on maximizing additional Canadian oil deliveries to the U.S. The company is advancing several expansions of its Mainline network—the primary conduit for Canadian oil exports to the U.S.—and reversing the Bakken pipeline in North Dakota forms part of this broader strategy.

“Energy security has become even more critical since the start of the Iran conflict, and Enbridge is positioned to deliver North America’s abundant energy resources—both domestically and globally,” said Enbridge CEO Greg Ebel during his May 8 earnings call.

This includes partnering with Energy Transfer, the developer of the Dakota Access Pipeline, whose co-CEO Tom Long expressed optimism on May 5 that a final decision to add 250,000 barrels of Canadian oil to DAPL could be reached within the next one to two months.

These new projects also reinforce Canada’s reliance on the U.S. market at a time when the country has sought to redirect more oil shipments from the West Coast toward Asian markets. In addition to the planned expansion of the Trans Mountain Pipeline—the only system currently moving oil eastward—proposals are under discussion for a new pipeline from Alberta to British Columbia.

Rumsey argued that the newly permitted U.S.-based projects eliminate the need for another western pipeline. “I’m very skeptical of building another pipeline,” he said. “I don’t think Canada wants to end up with an expensive redundant system.”